Options Trading Tutorial

Can you trade IPOs using options right after a companies IPO has started trading on the stock market?

I want to know if when a company has an IPO, if you can start using options to trade that companies stock right after the IPO has started trading on the stock market? Please give me a simple, easy to understand answer to earn Best Answer.

Public Comments

  1. Normally the stock options covenants list any restrictions. There is no SEC regulations if that is what you need.
  2. what are the put and call dates on your options?
  3. No, you cannot. Options will not be listed on a stock until some time after the stock has been trading for some time. Options exchanges have minimum requirements for a stock before they will list options on the stock. Among the requirements is a minimum trading volume. Prior to the IPO there is no volume because the stock is not trading.
Powered by Yahoo! Answers